This short sale home at 497 Managua Way, Mary Esther Florida, is under contract as a VA Compromise Sale with a PHH mortgage. It has been approved for closing within 30 days.
What is a VA Compromise Sale? It is the Veteran Administration’s version of a short sale. One important point about a VA Compromise Sale is that you must have a hardship to be approved. What is a hardship? It could be PCS (permanent change of station), divorce, job transfer, medical expenses, death of a breadwinner, unemployment, reduction in pay and more.
Be aware that with a VA Compromise Sale, a portion of your VA entitlement won’t be available for a future home purchase unless you reimburse the Veteran’s Administration. You may still have sufficient entitlement remaining to buy another home with a VA loan, however. You can find out by calling the VA directly. Another point is that your credit will be affected with a VA Compromise Sale. It may be recorded as “settled for less”. Your FICO score could drop 50-200 points. It may take you a couple of years to rebuild it.